Nio

Nio weekly special report based On 1.00 Lot Calculation:

CHINA EV MARKETS:

• CHINA LEADS THE WAY (2022): EV MAKES AROUND 22% OF THE CAR MARKET IN CHINA, UP FROM 13% IN 2021: More than half of the total electric vehicles (EVs) sold worldwide last year (including plug-in hybrids) went to buyers in China. China led global EV growth in 2021 as sales nearly tripled (UP 277%) to 3.4 million (from 0.9 million in 2020). Total number of cars sold in 2022 in China was 26.86 million, and EV made around 22% of the market. Tesla is the largest EV in China, holding some 14% of the markets, followed by GM’s Wulling (~11.8%), BYD (~10%) and NIO with 2.7%.
• CHINA’S EV MARKETS EXPECTED TO GROW BY 35% in 2023 TO 9 MILLION VEHICLES. Globally, the EV markets could be expected to grow from 10.5 million to 11 million units in 2023. In China, the estimates say that around 27 million cars in total will be sold. The EV could make up around 33% of the total car markets.
• ELECTRIC VEHICLES IN CHINA COULD BE EXPECTED TO TAKE UP 40% OF CHINA’S CAR SALES BY 2030. Total car sales could be expected to grow to 38 million in 2030, while around 15 million (or 40%) to be Electric Vehicles.

NIO:

• THE COMPANY: Nio offers electric vehicles and parts and provides battery charging services. It currently sells eight models including SUV’s, crossovers, and passenger cars. The company is headquartered in Shanghai, China.
• NEWS (March 1st, 2023): Nio plans to build a new battery plant in China.
• NEWS: (February 21st, 2023): Nio will build a new factory to produce budget EV’s for export to the European market, according to Reuters.
• NEWS: Bailie Gifford increased their stake: Bailie Gifford, one of the largest asset managers in Europe, increased their position in Nio to 7.97% from 6.28% of the outstanding shares.
• EXPECTATIONS:

• DEUTSCHE BANK expects Nio to enter a robust product cycle. The bank expects deliveries to reach 320 000 in 2023. On December 15, 2022 Deutsche Bank said the stock could rise more than 70% in the next 12 months.
• NIO CAR SALES TO GROW ON AVERAGE 52.30% ANNUALLY BETWEEN 2022 AND 2025. Nio delivered 91,429 vehicles in 2021, and that number could be expected to jump to at least 469,687 in 2025.
• NIO COULD BE EXPECTED TO MAKE 4.34% OF THE GLOBAL EV MARKET BY 2025 (UP FROM 1.78% IN 2021). Revenue outlook rises from 2021’s $5.14 billion to $24.67 billion in 2025 per year (increase of 379%).
• Nio plans to enter the U.S. market by 2025.

• NEWS (CHINA): China has re-opened and is transitioning to a recovery phase. Goldman Sachs raised its 2023 GDP target to 5.5%, Year-over-Year. On February 20, 2023, they forecast a 24% increase in Chinese stocks by the end of the year.

OTHER:

• ANALYST OPINION: The consensus forecast for Nio’s stock according to Bloomberg is $15.05. Credit Suisse set a price target of $15.70 on March 2nd, 2023. Morgan Stanley reiterated its target of $16.10 on March 2nd, 2023. Citi set a price target of $23.30 on March 1st, 2023. Mizuho Securities set a price target of $25 on March 1st, 2023.
• STOCK PRICE ACTION: Nio stock made its all-time high of $66.85 in January, 2021 and since then fell over 85%. Nio has not traded below $8 since July 2020. The stock currently trades around $9.00. If a full recovery follows, the stock could increase over 500%, however the price could decline further.

#NIO, March 2, 2023
Current Price: 9.00

Example of calculation base on weekly trend direction for 1.00 Lot¹

1. 1.00 lot is equivalent of 1000 units

2. Calculations for exchange rate used as of 08:48 (GMT) 2/03/2023
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